Card Surcharge Ban: Retailers Ill-Prepared for New Rules

Australian retailers face a new rule banning extra charges on card payments from October 1, 2026. Experts warn smaller shops and some migrant-run businesses may struggle to comply, risking inadvertent breaches. The policy aims to reduce fees paid by consumers. This explainer outlines what changed, who is affected, and what businesses can do next.

What changed and why

Australia has implemented a policy to end surcharges added to card payments. The intent is to save consumers money by eliminating what some shoppers see as hidden fees. The Reserve Bank announced the regulatory changes in March as part of an overhaul of the payments system, including changes to how credit and debit card transactions are charged.

Important: the ban targets extra charges for card payments at the point of sale, not the base price of goods. It is designed to apply across many retail settings, from supermarkets to cafes. The exact rules and enforcement details are set by regulators and may include transitional provisions and penalties for non-compliance.

Who is affected and what the risks are

Major banks and large national chains have reportedly adapted, but smaller retailers face compliance hurdles. Some shop owners — particularly those run by migrants or with limited English proficiency — may be less prepared to implement the changes at checkout. If a business continues to show a surcharge after October 1, it could risk penalties or enforcement actions. Businesses using older cash registers or manual-entry systems may have more difficulty updating to the new rules.

Practical next steps for retailers

Review checkout systems: check whether current payment terminals and point‑of‑sale software automatically suppress surcharge line items. If not, plan updates or staff training to ensure surcharges aren’t applied.

Audit price labeling: ensure the posted price and what is charged at the terminal align with the ban. Remove any separate surcharge line items from receipts or displays.

Seek guidance: contact bank representatives, POS providers, or industry groups for official guidance on compliant configurations and any transitional arrangements.

Training and documentation: prepare simple, multilingual guidance for staff explaining that surcharges must not be added to card payments and how to handle customer questions.

Limits, questions, and monitoring

Regulators may publish formal details about allowable practices, exceptions, and penalties. Retailers should monitor announcements from the Reserve Bank and local authorities for updates. If uncertainties remain, retailers should document their compliance efforts and seek formal advice to avoid inadvertent breaches.

Information and responsibility notice: This article is general information based on the cited material available when published. It is not legal, tax, immigration, medical, financial, banking, or investment advice; it does not create a professional-client relationship; and it is not a guarantee of outcome, availability, accuracy, or eligibility. Rules, schedules, prices, and third-party information can change. Confirm material decisions with the relevant authority and an appropriately qualified adviser before acting.